Ramifications of the Indo-U.S. Nuke deal – economic benefits,advantages and disadvantages
Posted by: Harshvardhan on: June 24, 2008
- In: Indian news| business| economy| india| investment
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Update : Co-Sponsor of the bill, from the Democrats, Joseph Biden has been nominated as the Vice President along side Barack Obama. He is a strong backer of the deal – lets keep our fingers crossed until the results!! Read more>>
For almost 30 years the U.S. has been at the fore of aglobal fight to deny India access to Nuclear power technology, because it developed nuclear weapons and tested them.(Cruel Hypocrisy really,considering that the U.S. were among the earliest nations to develop nuclear weapons and test them)
Now after nearly three decades India have been offered a golden opportunity to emerge out of their nuclear seclusion and be at par with the top nations of the world in terms of nuclear energy output.
At present nuclear power production in India accounts for only a measly 3% of the total generation of 120,000 MW. Large scale nuclear power production would also mean less dependence on traditional sources of non-renewable fuel such as coal,oil and petroleum. Abundant nuclear power production would obviously lead to a fall in fuel and electricity prices.It especially holds relevance as a promising new alternative in the face of price rise and fall in oil output.
The fruits of total privatisation are seen in the telecom sector. Gone are the days when a cellphone was an item of luxury beyond the reach of the common man.
The nuclear deal could mean a similar privatisation in the energy. According to a report in Bloomberg,multinationals such as Westinghouse,Rosatom,GE and Areva have expressed a keen interest in operating a nuclear power plant in India,should the government encourage private investment. Indian companies such as Tata power and Reliance Energy are more than eagerly open to such a proposition.
But how does the U.S benefit from the deal?
A valid question. The U.S. would be supplying India with both nuclear technology and reactors,should the deal progress beyond endless chatter and talks. The U.S.A. is projected to mint over $150 billion of the deal.
That precisely is what the Left is worried about. The deal would mean that India is completely dependent on the U.S. for supply of technology and reactors. This places India in a vulnerable position,open to being exploited for the U.S. would be able to dictate the price,terms and conditions as they please.
Verdict
The pros outweigh the cons and hence India should go with the deal. They must however not haggle so much and must make a quick decision.In any case the deal will not bring change or improve the lives of the people who constitute the real India-India lives in small towns and villages,not metropolitan cities or big towns,and I’m afraid that the deal is going to benefit only the latter.
What is your take on the nuke deal?Is it a boon or a bane? We are open to all your views and criticisms.We encourage you to leave behind a comment on the comments page.
29 Responses to "Ramifications of the Indo-U.S. Nuke deal – economic benefits,advantages and disadvantages"
June 24, 2008 at 11:09 am
I disagree Shraddha. Going by the past record of the U.S it only makes sense to agree with The Left. The U.S are certain to take advantage of India and will try to make as much money out of it as possible.
I think the last line of the article was very correct in pointing out that the majority of India’s citizens will not benefit from the nuke deal whatsoever.
June 25, 2008 at 2:48 am
This is high handedness. Surely, unwanted deal. Why should be binding with $150 billion.. This should be under normal trade practise bargainable. Why should we commit in such a deal then. I now take a opposing stand to the NUKE Deal..
Vighnesh
June 25, 2008 at 10:46 am
Isn’t the India USA Nuclear Deal / Indo-US Nuclear Deal also known as the 123 Nuke Deal?? We would all like it if someone tells the importance of the number 123.
June 25, 2008 at 5:33 pm
Yes Gingesh,you are absolutely correct – the nuke deal is also known as the “123 Agreement” because it falls under a U.S. Atomic Energy act of the same number.
July 5, 2008 at 10:10 am
We dont yet know the the wonders a cheap and dependable energy can do to our lives, not becuase we lack education but beacuse we tend to look back rather than look froward. The life in rural area imroves if the urban area is thriving it is not true other way round. After all jobs are in the urban area not in rural areas. The law of poseperity seem s to a complete circle.
Look at the 15% rise in cost of the feul, it has played havoc with the life of general public. Everything have gone dearer by moe than 10%. Imagine if the cost of electricity come down by 30% and the supply becomes depenabdable. It will change the way we live.
Even after the deal has been made, we can still go ahead with our nuclear weapon program. We just have to keep the facilities open for inspection. This is fine. We can have Pokharan -III.
When there is much benifit from th nke deal, We are have to be dependent upon the suppleir. The law of nature is youalways bown down to the giver ! Be it the Sun, the Earth the Water, the mother .
July 7, 2008 at 3:04 pm
if we have nuclear deal with USA india will under the control of usa as we were under the control of british . USA would also come to know the secrets of india .so it is better not to have adeal with USA
July 10, 2008 at 12:27 pm
i do agree with the author,that india should go with the nuke deal…………. and the left parties should give up their ego and support our govt….. As india is a great importer of oil,nuke deal with US is a must
July 11, 2008 at 3:48 pm
i feel N deal is the great oppertunity for the country like india we need more nuclear power…… and thing is all political parties are making nuesense. india is developing only 3%of nuclear power ……. where china, japan , france countriessssssss are developing more than 1/3rd of nuclear power …….
July 12, 2008 at 10:48 am
I think this deal will make us totally dependent on u.s.
And above all our relationships with the the neighbouring countries will also not be good. India has been a peacefull country and has wanted the world to be peacefull. So even if this deal can bring down electricity prices it has some risks .We need not have nuclear deal signed at the risk of losing our freedom and lives. let us not let US take advantage
July 21, 2008 at 1:11 pm
US will now get the chance to interfere in our matters and will take advantage of the situation as they have been doing with all other countries they considered as a threat.Our country has never been a biased one.After this deal we might be forced to support the U.S in every matter even if it is wrong or unfavourable to the country.
July 27, 2008 at 7:23 am
The nuke is sure to benefit the country.Thus our politicians should rise above petty politics and should go for the deal.
July 27, 2008 at 1:36 pm
The Nuclear Deal wil have a positive impact in our day to day life, if not verye soon but definitely in the long run. It is a courageous step taken by Indian Government. It wil reduce dependence on petrol, coal etc.
July 29, 2008 at 6:14 pm
I value all your comments but when you at the gain you say that itz huge say 30% cut down on the price for electicity and petrol, is teh government promising on it. The harder truth is NO. Still when u look deep in to it you will find that we would be bounded to US and we will not be able to take any decission on ourself.
When ever there is a need for us to produce new technology using Nuclear testng we cant enclose it, and US must be informed on wht is happening. Dont you think it is rediculus? Think in a smaler picture example if a Family needs money and a third person gives the money and tells the family that I ned to know wht you are doing with the money and I will constantly keep a check on the buyings in your house, on top of it I will take only intrest of 10% from your family. This is the exact senario which N Deal deals with.
When you compare the advantages and disadvantages I would suggest, government will be doing an Insanity to the citizens of India signing up the N deal!
July 31, 2008 at 6:08 am
The signing of Nuke deal by India is of a mingled consequences good and ill together.If We hold the scales even in the context of our future needs of power and energy,the decision to sign implies foresight.Have we not cut the wood for the forest before?It will definitely address the interest of the common man indirectly.So favouring the deal is wise.
August 6, 2008 at 5:05 pm
• India is an agro nation. Hence we need to focus on our strengths and develop our agricultural practices.
• This deal will effect our sovereignty in future
• Indian nuclear power plants are based on a different technology than the technology united states is offering us( heavy water)
• The possibilty of sabotage cannot be neglected and in a densely populated nation the consequences would be un-imaginable (remember Bhopal Gas tragedy)
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September 3, 2008 at 2:22 pm
1)Until a nuclear device is detonated afresh the supply will not qualify under the agreement to cease
2)The wahington post report of 3rd sept 08 therefore is’nt anything new.
3)Further grist to the mills of Indian politicians of all hues most of whom are ill equipped to percieve accurately.
4)as long as disposal of wate is not going to too costly the deal is ok.Waste disposal however sd not be a case cure being worse than the disease
[...] Ramifications of the Indo-US Nuke deal – economic benefits …For almost 30 years the US has been at the fore of aglobal fight to deny India access to Nuclear power technology, because it developed nuclear weapons and tested them.(Cruel Hypocrisy really,considering that the US were among the … [...]
September 17, 2008 at 11:15 am
1)Privatization in Nuclear Energy Field? That’s a too general statement, I am afraid. Building nuclear reactors could be something that could be & will be entrusted to private sector; not the entire management.
2) “It will benefit big cities”… Why my friend? Energy needs are for the nation…entire nation. With tightly integrated economy like ours, benefit to one sector percolates to others…You don’t need PhD in economics to realize this simple economics. I support wangchuk Shamshu’s views. I would humbly request you to take a look at my blog where I have posted 3-4 articles on the same topic.
3)@ Tanvi, Yes India is agro-based nation. What has that to do with this deal? Or being agrobased means we don’t need energy? Coal reserves are diminishing in hurry; Oil & gas are economically volatile options; Hydro power, Wind & Solar power has limitations. Nuclear power can provide reliable, sustainable source of energy in long run. And by the way, deal does not directly affect Indian Sovereignty.
Refer my blog- amitsworld.wordpress.com for details.
Yes, Indian power plants are based on different technology and that’s the point. We need to move on to newer technology i.e. Light Water Reactors & FBRs (Fast Breed Reactors). Deal will help.
4)@gingesh & Harsh, 123 is not the number of Act; but a Section in the Act. USA has concluded 123 deals with 25 other nations. Indian case is unique because it is nuke power, it hasn’t signed NPT/CTBT & yet has got NSG waiver.
September 30, 2008 at 2:46 pm
you are absolutely rit neethu…we’ll be surely forced to do everything to support U.S. in future…we won’t be able to take decisions on our own…we should have their consent to do whatever we want 2 do in our country..its surely a trick of U.S.
October 2, 2008 at 11:30 am
i completly agree with my frds above because India needs more power-plant, more electricity and in near future our coal resources willnear to be in end, thats why we need very much neccesary
October 3, 2008 at 4:55 pm
I have read the article and the opinions. I have only one question related to this. Can anyone cite a single nation’s name which has been a pet of the USA and has progressed withe help of the US? There are only examples of chaos and destruction everywhere in the world with the US friendship and intervention. On these grounds India will never benefit out of the Nuke deal and the US has its own hidden Agenda which will ofcurse hamper the growth of the country.
October 4, 2008 at 11:24 am
YES, Israel and south korea are good examples of nations that have developed with the support of the U.S . and i dont think there are hedden agends in the deal.
lets speak facts.India is in urgent need of power supply which at the moment cn only be in the form of renewable energy as non-renewable resources are either too scarce or expensive.
THe only other alternative is Nuclear power. so the pros are much higher than the cons
January 22, 2009 at 4:22 pm
i completly agree with my frds above because India needs more power-plant, more electricity and in near future our coal resources willnear to be in end, thats why we need very much neccesary
also the economy of country will become strong and the unemployment will decrease..
June 24, 2008 at 9:54 am
I feel that The Left are making a mountain out of a molehill. They are creating a wrong image of the United States as being ruthless,greedy capitalists. The Left are a hindrance to India’s progress and it would be a real disgrace if India lets go of this one-opportunities don’t come knocking on one’s door very often,but when they do you have to take it,no question about that.